China to further widen VAT reform
BEIJING -- Value-added tax reform in some pilot regions will be expanded to more areas as burdens on Chinese business have been reduced, the Ministry of Finance said Friday.
As of Friday, the reform, replacing the turnover tax with a value-added duty in transport and some service sectors, has reduced taxes of over 40 billion yuan ($6.4 billion) for more than 1 million taxpayers in 12 pilot regions, according to a conference held by the ministry.
The ministry said the reform had reduced burdens on lower taxpayers by an average of 40 percent.
Turnover tax refers to a levy on the gross revenue of a business. VAT refers to a tax levied on the difference between a commodity's price before taxes and its cost of production.
China introduced the reform in Shanghai last year to avoid double taxation. The program was later expanded to another 11 regions, including Beijing, Tianjin and Shenzhen.
The ministry said it will bring the reform in transport and some modern services nationwide, and actively study the possibility of extending the change to more sectors.
Related Readings
Tax reform aid subject to corporate taxTax cut to benefit 900,000 enterprises
China taxation reforms to boost industrial upgrading
Innovation in VAT 'boosts service sector'
Taxing times for China's tax reformers
- Agri-Urbanism: new path to sustainable development
- China's industrial value-added output up 10%
- China expands VAT trial to 3 more regions
- Fujian & Guangdong join to pilot on VAT
- Details set for VAT reform in Guangdong
- Tax reform aid subject to corporate tax
- Tax cut to benefit 900,000 enterprises
- China taxation reforms to boost industrial upgrading
- Innovation in VAT 'boosts service sector'
- Taxing times for China's tax reformers